Following the Presidential Cabinet Meeting, it was announced that certain support measures and practices would be implemented and their durations extended...

SUMMARY: Following the Presidential Cabinet Meeting, it was announced that certain support measures and practices would be implemented and their durations extended.

Dear Member,

Following the Presidential Cabinet Meeting of 14 December 2020, some of the items concerning our sector from the statement made by our President are presented below. Accordingly;

The curfew will be in effect from 9:00 p.m. on Thursday, 31 December until 5:00 a.m. on Monday, 4 January 2021. In this case, only Friday, 1 January 2021 has been added to the existing practice.
For tourism facilities and maritime tourism facilities on Treasury real estate, the payment periods for rent, final permits, final allocations, easement rights, usage permits, benefit and revenue shares, and occupancy fees (ecrimisil) will be deferred for 1 year without the requirement of an application.
Municipalities will be enabled to take decisions to reduce or defer the fees arising from easement rights, leasing, and similar use of the real estate they own or hold.
The withholding tax rate on real estate rents, reduced from 20 percent to 10 percent, and the VAT rate on workplace leasing services, reduced from 18 percent to 8 percent—both in effect until the end of 2020—will be extended until 1 June 2021.
The VAT reductions in effect until the end of 2020 (1% on Accommodation, 8% on Food & Beverage, etc.) will be extended until 1 June 2021.
The withholding tax rates on interest and profit shares on TL deposits in effect until the end of 2020—5 percent instead of 15 percent on accounts with terms of up to 6 months, 3 percent instead of 12 percent on those with terms of up to one year, and 0 percent instead of 10 percent on those with terms of more than one year—will continue to be applied until the end of March 2021.

Matters such as the Circulars, Communiqués, and Regulations to be prepared by the relevant Ministries and Institutions regarding the implementation of these arrangements will be announced separately, and we present the above-mentioned matters for your information.

Respectfully,

TÜROB Headquarters